openstreetmap - Is there a method to create offline geocoder using OSM xml data?

I am trying to develop an offline android map that makes use of OSM map tiles of 15 zoom level, For this purpose i used an open source library : Osmdroid

Now, i m looking into the possibility of creating an offline geocoding/ reverse geocoding that can be integrated with my application,

can i use Osm xml data for that purpose? if so , then can anyone suggest/explain how to use it to create SQlite db.. to be used wit my app

While doing this, i hope i m not violating any data usage terms or conditions?

Thanks